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I am mining Ethereum, was using Mist wallet. Just purchased Ledger Nano S. Is it possible to transfer Ether without paying transaction fee?

Is it possible to mine directly into Ledger Nano S? (Completely remove Mist)

Please give me some tips how to handle transactions properly and efficiently.

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You cannot transfer ether without paying transaction fees (there is a gas cost associated with transfers and gas prices must be greater than 0).

If by "mine directly" you mean "receive payouts from a pool" or "use the Ledger address as a mining coinbase", the answer is yes. If you mean "use the Ledger as a mining node", the answer is no.

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Yes it is possible but...

Problem

It is not recommended to receive mining payouts to a hardware wallet (Ledger Nano, KeepKey, Trezor...). Hardware wallets are intended more as a long term savings account with few transactions, and less as a current account.

Solution

Instead it's better to consolidate the transactions on an online/local account and transfer them periodically to the hardware wallet.

Explanations

  • From Ledger

    If you have mining activities and receive multiple small payments, also called "dust payments", on your hardware wallet, it can saturate the synchronisation of your Blockchain transactions, and cause an unexpected length during every validation or verification processes. This issue is due to the unexpected number of small unspent transactions coming from your mining activities that your hardware wallet can hardly achieve to spend all in once.

  • From Trezor

    In general, it is not recommended to direct pool payouts to hardware wallets like TREZOR. All hardware wallets have limited computational power, especially when compared to a desktop computer, and thus require more time to sign a transaction. This is not an issue with normal transactions, but when spending pool payouts, this can severely prolong the time required. Consolidate your pool payouts in an external wallet and then send your savings to your TREZOR. Alternatively, increase the threshold for pool payouts directed to your TREZOR, so that you don’t receive small amounts every day.

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    The advice here is not pertinent to Ethereum; this issue affect Bitcoin because of the way UTXOs are used to spend bitcoin. Ethereum does not use this and thus this does not affect Ethereum. An intermediate account provides no benefit described here. – lungj Jan 28 '18 at 5:29

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